25 August 2010 07:15 [Source: ICIS news]
By Judith Wang
July revenue from the petroleum and chemical industries rose 24.4% year on year to yuan (CNY) 713.4bn ($105bn), 7.2 percentage points less than in June, according to a report released by the China Petroleum and Chemical Industry Federation (CPCIF).
Petroleum and chemical industries had posted a strong 41% rise in revenue on increased output and strong demand for the first six months of the year.
“The sales growth in the second half [of 2010] will definitely slow down because the sales basis during the same period of last year was very high,” said Wang Qiang, an analyst from Shanghai-based brokerage firm Xiangcai Securities.
The petrochemical industry could face further downward pressure in the second half, as
Chinese vice president Li Keqiang twice this month emphasized the need to curb property speculation, state-run media Xinhua reported.
A drop in downstream demand has also reduced the petrochemical industry’s revenue growth, analysts said, adding that demand growth would fall further in the coming months.
Average housing prices in some cities surged 25-50% in 2009 pushing
However, increased auto sales, reflecting the growing purchasing power of
Full-year sales in the industries for 2010 were expected to rise by 29.3% from last year to CNY8,570bn, with sales growth in the third quarter predicted to increase by 25.2% year on year and that for the fourth quarter to go up by 16.5%, CPCIF had said in an earlier report.
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